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Autonomous Cars Should Tata Motors be Worried? 8/29/2016 1 Presented by: Arun T M Manzoor Ul Akram Shaili Singh FPM03002 FPM03005 FPM03008

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Page 1: Should Tata Motors go for Autonomous cars?

Autonomous CarsShould Tata Motors be Worried?

8/29/2016 1

Presented by:

Arun T MManzoor Ul AkramShaili Singh

FPM03002FPM03005FPM03008

Page 2: Should Tata Motors go for Autonomous cars?

Cars that drive themselves?

Are they viable in India and other emerging markets?

But first, a little bit of history…8/29/2016 2

Page 3: Should Tata Motors go for Autonomous cars?

Autonomous Timeline

First Autonomous CarFirst truly autonomous car unveiled by S. Tsugawa at Japan's Tsukuba Mechanical Engineering Laboratory

EUREKA PrometheusThe European Commission funds

the €800 million EUREKA Prometheus Project on

autonomous vehicles

Ernest Dickmanns’ vision-guided Mercedes-Benz van achieves 39 mph on streets without traffic US Department of Defense funds the DARPA Autonomous Land Vehicles (ALV) project

39 MPH on street without traffic

Dickmanns / Daimler-Benz vehicles, VaMP and Vita-2, drive more than 620 miles in Paris

1994

1977

1980s

1987

1977

Although it started in 1920!

8/29/2016 3

Page 4: Should Tata Motors go for Autonomous cars?

Carnegie Mellon University

Carnegie Mellon University Navlab project ("No Hands Across America”) achieves 98.2% semi-autonomous driving over 3,100 miles

Alberto Broggi's ARGO Project achieves 94% fully autonomous driving on a 1,200 mile journey across Northern Italy

ARGO Project

DARPA Urban Challenge focuses on 60-mile urban environment, Carnegie Mellon's team takes first place Google starts their Driverless Car program using a mix of Google Maps data, radars and LIDAR

2007 to 2010

2004 t0 2005

DARPA starts long distance competitions; In 2005 $2 million prize awarded to Stanford University

1995

1996

2004 t0 2005

2007 to 2010

8/29/2016 4

Page 5: Should Tata Motors go for Autonomous cars?

Long Way To Go!

Nissan

Nissan announced its plans to launch several driverless cars

by 2020

Navia shuttle became the first self-driving vehicle to be available for commercial saleGoogle announced plans to unveil 100 autonomous car prototypes built from scratch insideGoogle's secret X labIn October 2014 Tesla Motors announced its first version of AutoPilot

Induct Technology

Other players entering

Delphi Automotive became the first automated vehicle to

complete a coast-to-coast journey across North America

Volvo announced plans to deploy 100 XC90 self-driving cars to test them in everyday driving conditions in China in

2017, etc

2013

2014 to 2015

2016

8/29/2016 5

Page 6: Should Tata Motors go for Autonomous cars?

Motivation Technological Change Issues Future

8/29/2016 6

Page 7: Should Tata Motors go for Autonomous cars?

Net Beneficiaries of autonomous car boom

Motivation Technological Change Issues Future

8/29/2016 7

Page 8: Should Tata Motors go for Autonomous cars?

Influencing Factors

Forces Shaping Automobile

Industry

Diverse Mobility

Ride Sharing

Shared Mobility

Autonomous Driving

Electrification Connectivity

• Digitization of automobile industry and push for “Smart Cars”• Increased influence of electronics over the

automobile industry (Hardware front)• Increasing influence of Artificial Intelligence

driven technology (Software front)• Increased focus on Machine vision and

machine learning centered R&D• Increased influence of connectivity

technology • R&D to move away from fossil fuel run vehicles

due to negative sentiments towards fossil fuels.• Growing environmental concerns• Growing safety concerns

Motivation Technological Change Issues Future

8/29/2016 8

Page 9: Should Tata Motors go for Autonomous cars?

TATA Motors

8/29/2016 9

Page 10: Should Tata Motors go for Autonomous cars?

Annual Finance Consolidated Annual Finance Consolidated Annual Finance Standalone Annual Finance Standalone Profitability

Rs. Million Rs. Million Rs. Million Rs. Million

L L L L

Company Name Sales Profit after tax Sales Profit after tax Sales Profit after tax Sales Profit after tax Consolidate

Automotive Stampings & Assemblies Ltd. 2882.4 -206.9 0% 0% 0% 0%

Indian Hotels Co. Ltd. 41886.4 -3470.8 20243.8 -820.2 1% -1% 1% 0% -8.29%

Nelco Ltd. 2057.3 -66.1 1391 -51.2 0% 0% 0% 0% -3.21%

Oriental Hotels Ltd. 3799.2 -25 3076.7 -73.2 0% 0% 0% 0% -0.66%

Rallis India Ltd. 17265.6 1467.3 14043.3 1260.2 0% 0% 1% 0% 8.50%

T R F Ltd. 12022.3 -342.5 5622 -46.7 0% 0% 0% 0% -2.85%

Taj G V K Hotels & Resorts Ltd. 2753.3 35.9 2697.8 84.2 0% 0% 0% 0% 1.30%

Tata Chemicals Ltd. 174065.4 8073.9 102991.2 6379.7 3% 2% 5% 2% 4.64%

Tata Coffee Ltd. 17641.2 1621.2 7178.7 1066.3 0% 0% 0% 0% 9.19%

Tata Communications Ltd. 179594.8 29.5 43193.5 6746.2 3% 0% 2% 2% 0.02%

Tata Consultancy Services Ltd. 1086470.7 243936.6 858680.4 229014.2 18% 54% 38% 80% 22.45%

Tata Elxsi Ltd. 8494 887.2 10752 1548.1 0% 0% 0% 1% 10.45%

Tata Global Beverages Ltd. 79444.9 2843.6 28605.1 2989.4 1% 1% 1% 1% 3.58%

Tata Investment Corpn. Ltd. 1972.6 2026.1 0% 0% 0% 1%

Tata Metaliks Ltd. 13897.8 1227.9 10383.5 506.1 0% 0% 0% 0% 8.84%

Tata Motors Ltd. 2338952.3 141832.1 394349.4 -46455.5 38% 31% 17% -16% 6.06%

Tata Power Co. Ltd. 340091.8 3992.8 85442 10255.6 6% 1% 4% 4% 1.17%

Tata Sponge Iron Ltd. 6330.4 308.8 6330.4 308.3 0% 0% 0% 0% 4.88%

Tata Steel Ltd. 1532600.1 36639.7 463663.5 64391.2 25% 8% 20% 22% 2.39%

Tata Teleservices (Maharashtra) Ltd. 22794.7 802.3 28927.3 -6152.5 0% 0% 1% -2% 3.52%

Tinplate Co. Of India Ltd. 8479.7 733.8 0% 0% 0% 0%

Titan Company Ltd. 119493.3 8162.5 119367.1 8230.7 2% 2% 5% 3% 6.83%

Trent Ltd. 24447.4 -187.3 14246.3 1000.3 0% 0% 1% 0% -0.77%

Voltas Ltd. 51958 3880.7 51831 3359.6 1% 1% 2% 1% 7.47%

Page 11: Should Tata Motors go for Autonomous cars?

-40%

-20%

0%

20%

40%

60%

80%

100%

Sales

Profit after tax

Sales

Profit after tax

-5

0

5

10

15

20

Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14

Profitability

PBDITA as % of total income PAT as % of total income

4.48

5.55.19 5.01

5.82

0.781.23

0.841.16 1.17

0

1

2

3

4

5

6

7

2011 2012 2013 2014 2015

Ratios

Interest Cover Debt Equity Ratio

Page 12: Should Tata Motors go for Autonomous cars?

JLR

8/29/2016 12

-263.4

-5.9 -1.3

-300

-250

-200

-150

-100

-50

0

2013 2014 2015 2016

PAT as % of total incomePAT

Page 13: Should Tata Motors go for Autonomous cars?

Observation

Tata Motors is doing well but has a high debt to equity for an automobile manufacturer

The commercial trucks division is doing fine

JLR is struggling to make profits

Must look for differentiation.

8/29/2016 13

Page 14: Should Tata Motors go for Autonomous cars?

How AC will change dynamics of industry

14

MedicalMotor Vehicle Accidents (MVA) account for

$23 bn in hospital spending, which translates to ~1.5% of all total hospital care and physician

services costs.

Insurance prices are likely to decline due to lower accident frequency. However, accident severity costs may continue to rise as car complexity rises

Insurance

Near-term: A demand for increasingly complex software in auto design and manufacturing. Longer-term: Standardization of custom-built software on packaged platforms or application sets. • Managing “big data” resulting from increasing sensor counts in vehicles.

Software

Today, connected cars are a modest near-term revenue opportunity. This could potentially reach ~$100 bn with the rise of autonomous driving. Positive for towers, while carriers face opportunities and risk

Telecom Equipment

Shifting the “value” of the car away from predominantly hardware to a software component as well, thereby allowing new players to enter and forcing existing players to reinvent

themselves or cede share

Auto OEMs and Suppliers

Transforming cars into workplaces or leisure venues could Increase the benefits of private ownership, to the detriment of rental companies. The fleet management/customer service opportunities in the world of the roving autonomous car parc could be significant.

Car Rental

We conservatively estimate the potential savings to the freight transportation industry at $168 bn annually Collateral implications include competitive advantage to large, well capitalized fleets

Freight Transport

Transforming the Industry

Motivation Technological Change Issues Future

8/29/2016

Page 15: Should Tata Motors go for Autonomous cars?

Potential cost savings (US)

15

01Fuel Savings

$158 Bn.

02Total savings from

accidents avoidance

$488 Bn.

04Productivity gains from Congestion Avoidance

$138 Bn.

05Fuel Savings from congestion Avoidance

$11 Bn.

03Productivity gains

$507 Bn.

Source: Morgan Stanley Research

Motivation Technological Change Issues Future

8/29/2016

Page 16: Should Tata Motors go for Autonomous cars?

The Social Commitment

8/29/2016 16

Page 17: Should Tata Motors go for Autonomous cars?

0

2

4

6

8

10

12

14

16

State-wise Accidents Data

Share of States/UTs in Total Number of Persons Killed in Road Accidents - 2011 Share of States/UTs in Total Number of Persons Killed in Road Accidents - 2012

Share of States/UTs in Total Number of Persons Killed in Road Accidents - 2013 Share of States/UTs in Total Number of Persons Killed in Road Accidents - 2014

Motivation Technological Change Issues Future

8/29/2016 17

Page 18: Should Tata Motors go for Autonomous cars?

0

5

10

15

20

25

Accidents per Lakh of Population

Total Number of Persons Killed in Road Accidents Per Lakh Population - 2011 Total Number of Persons Killed in Road Accidents Per Lakh Population - 2012

Total Number of Persons Killed in Road Accidents Per Lakh Population - 2013 Total Number of Persons Killed in Road Accidents Per Lakh Population - 2014

Motivation Technological Change Issues Future

8/29/2016 18

Page 19: Should Tata Motors go for Autonomous cars?

135000

136000

137000

138000

139000

140000

141000

142000

143000

2011 2012 2013 2104

Accidents

Accidents

Motivation Technological Change Issues Future

8/29/2016 19

Page 20: Should Tata Motors go for Autonomous cars?

Top reasons for accidents in India – Human Error

20

Over speeding

Òverspeeding is the number one cause of road accidents. An adult pedestrian has less than a 20% chance of dying if struck by a car at less

than 50 km/h but almost a 60% risk of dying if hit at 80 km/h.

Red Light jumping

It is a common sight at road intersections that vehicles cross

without caring for the light.

Drunken Driving

Driving under influence.

Distraction to Drive

Distractions could be outside or inside the vehicle.

Avoiding Safety Gears like seat belts and helmets

Gross negligence and ignorance.

Motivation Technological Change Issues Future

8/29/2016

Page 21: Should Tata Motors go for Autonomous cars?

Why Autonomous Cars

21

Lives saved

Fuel Saved

Traffic Patterns

Consumer Productivity

Government data show in 2014 alone, more than 275000 people were killed in road accidents

Cars that drive themselves based on predictive capability and the ability to alter the state of the car based on anticipated load conditions should be significantly more efficient than manually operated vehicles. Just using cruise control in a car of today can easily result in a 15-30% fuel economy improvement vs. manually operating the throttle

V2V and V2X capability should enable autonomous cars to know the position of surrounding traffic and create significantly more efficient traffic flow. Every year, the existing US car parc burns 3 billion gallons of gas sitting in traffic jams.

One benefit of smoother traffic flow, we believe, is less time spent on the road getting from Point A to Point B, which should significantly boost commuter productivity. The bigger gains could come from not having to manually drive the car, freeing up the occupants’ time spent in the car for other pursuits

Motivation Technological Change Issues Future

8/29/2016

Page 22: Should Tata Motors go for Autonomous cars?

Barriers to innovation are usually in the mind!

~Ratan Tata

8/29/2016 22

Page 23: Should Tata Motors go for Autonomous cars?

Car of the Future• Next gen Interiors• Exteriors• Retrofitting

Chassis

• Camera/Lidar• Ultrasound• Infrared• Long/Short Radar

Sensors

• Mobile Processors

• GPU

Computing

• Vehicle to vehicle communication

• Transmitters• Receivers• Advanced

Mapping

Navigation• Navigation• Communication

Software

Motivation Technological Change Issues Future

8/29/2016 23

Page 24: Should Tata Motors go for Autonomous cars?

Ups and downs in life are very important to keep us going, because a straight line even in an ECG means we are not alive

~Ratan Tata

8/29/2016 24

Page 25: Should Tata Motors go for Autonomous cars?

Issues

8/29/2016 25

Page 26: Should Tata Motors go for Autonomous cars?

Safety Issues

26

SAE, NHTSA &BAST criticized for ignoring established knowledge in human factors

Ill-conceived standards Left turn issue/Police officer waving With these cars, might become

at least as good as the average human faster than they would otherwise and thus save more lives overall

Utilitarian

Establishing an international agreement on rules and regulations for autonomous vehicles

Global focus on safety

Reduce the rate of traffic and congestion on the road.

Traffic

Code of ethics for autonomous vehicles in the event of an unavoidable accident

Ethics

Usage of LIDAR solves the problem

Motivation Technological Change Issues Future

8/29/2016

Page 27: Should Tata Motors go for Autonomous cars?

Legal AspectAdapting current safety standards and regulations to allow further testing of autonomous vehicles on public roads

Assessing liability in accidents involving autonomous vehicles

Establishing an international agreement on rules and regulations for autonomous vehicles

Safely integrating autonomous vehicles with other road users

Code of ethics for autonomous vehicles in the event of an unavoidable accident

Authorising police and law enforcement agencies to intercept and remotely stop self-driving vehicles

Allocating civil and criminal liability in the event of a cyber attack, vehicle hacking or deliberate interference with an automated vehicle

Information Collected while vehicle is in use

Invasion to privacy

Insurance Requirement

Patent/Copyright Act

Definition of Autonomous Vehicles

Prior control test by manufacturers

Presence of two drivers

Prior Authorization

Report Failures

Special Driver’s Licence

Statutory Law

Tort Law

Product Liability Law

Six geographical categories: Interstate highways , State highways , Urban

environments , Complex urban environments , Residential roads

,Unpaved or unmarked roads - Five environmental types , Night driving ,

Rain , Fog , Snow/Ice , High crosswinds (gusts above 30 mph)

Motivation Technological Change Issues Future

Page 28: Should Tata Motors go for Autonomous cars?

Sources of Competitive Advantage

2

Brand Value Internal

Suppliers

International Capability

Market Leaders

Brand Value

Most Reputed Company: Nielsen Report

Bagged more than 100 Awards

71 Years of ServiceWorld’s 5th largest Motor

Vehicle Manufacturer

Internal Suppliers

Tata Technologies LimitedEuropean Technical Centre

Software: TCSHardware Body: Tata Steel

Hardware Internal: Buy /Import; Acquire

Joint Venture operations in Kenya, Bangladesh, Ukraine,

Russia and SenegalDealership in 26 countriesMore than 6600 sales and

service point globally Presence in over 170 countries

International Capability

USD 42 Billion OrganizationLeading global automobile

manufacturerPortfolio covers wide range

of cars, sports vehicles, buses, trucks, and defence

vehiclesAmong top four automobile

companies in India

Market Leaders

8/29/2016

Page 29: Should Tata Motors go for Autonomous cars?

SPIDER CHART

010203040506070Geography

Functionality

Product

Technology

Series 1

Series 1

Geography10: India 20: APAC 30: MIDDLE EAST 40: AFRICA 50: RUSSIA60: EUROPE70: LATIN AMERICATechnology:10: RADAR20: LIDARProduct:10: Parking Assistance20: Cruise Control30: Semi Autonomous40: Full AutonomousFunctionality:10: Personal Vehicles(Cars)20: Freight Vehicles30: Public Transport40: Rental Services

48/29/2016

Page 30: Should Tata Motors go for Autonomous cars?

SWOT

5

12 4

3

Firm Infrastructure, HRM, Marketing and sales, Inbound and Outbound Logistics and OperationsTrusted BrandJaguar Land Rover: With some autonomyTCS

Strength

Leveraging TCS CapabilitiesSubsidiary: Jaguar Land Rover AdvantageTo become a leader in India in this segmentBecome a differentiatorEnvironment Sustainability (Developing and Growing Economy)Economise Indian IT Human Resource and other related suppliers (start ups) : Cheap Focus on freight (Faster Penetration)

Opportunity

Technology CompetenceLack of Suppliers for components

Weakness

High Cost of Technology eg. LiDAR 30LakhLack of Economics and Supporting InfrastructureRules & Regulations and Legal InfrastructureCheap Labour cost: DriversCar Rental ServicesAlternatives to travelling

Threat

8/29/2016

Page 31: Should Tata Motors go for Autonomous cars?

TATA MOTORS

6

Trusted Brand

Existing Supply Chain

R&D

Co Creation

• 71 Years of Service: Established in 1945

• Backing of TATA Group

• Foothold in market

.

• Tata Motors' UK R&D centre joins 'UK Autodrive' consortium project to demonstrate and integrate driverless cars into everyday life

• Tata Motors European Technical Centre (TMETC) to contribute Tata brand prototype autonomous vehicles for controlled tests in urban environment

• R&D centres in UK, Italy, India and South Korea

• Competence of its IT wing TATA Consultancy Services (TCS) in the field of robotics

• Tata Motors’ subsidiary -- Jaguar Land Rover (JLR) is planning to create a fleet of more than 100 research vehicles over the next four years, to develop and test a wide range of connected and autonomous vehicle (CAV) technologies.

• Design Centers in UK, Turin and India• Firm Infrastructure, HRM, Inbound and Outbound Logistic, Operations,

Marketing and Sales

8/29/2016

Page 32: Should Tata Motors go for Autonomous cars?

TATA MOTORS WORLDWIDE

98/29/2016

Page 33: Should Tata Motors go for Autonomous cars?

Future?

8/29/2016 33

Page 34: Should Tata Motors go for Autonomous cars?

I have always been very confident and very upbeat about the future potential of India. I think it is a great country with

great potential.

~Ratan Tata

8/29/2016 34

Page 35: Should Tata Motors go for Autonomous cars?

Categorizing issues

Stra

tegy

How do I coordinate existing resources and innovate to release this product?

What do I do is my competitor beats me?

How do I restructure the organization? Do I need to?

Who are my competitors?

Mar

keti

ng How do I position the

products?

What segment do I target?

What pricing strategy should I adopt?

Which cities should I sell in?

Op

erat

ion

s Where are my suppliers?

Where should I place my plant?

Where are my workers?

Supply chains

Cost control

Assembly line design Hu

man

Res

ou

rces

Where to I find the right talent?

R&D alliances?

Motivation Technological Change Issues Future

8/29/2016 35

Page 36: Should Tata Motors go for Autonomous cars?

NHTSA and SAE Classification of Autonomous Cars

Source: http://jalopnik.com/whats-a-level-4-autonomous-car-this-chart-explains-eve-1785466324

Strategy Marketing Operations Human Resources

8/29/2016 36

Page 37: Should Tata Motors go for Autonomous cars?

How automobile industry will be disrupted by digital services

17

Strategy Marketing Operations Human Resources

8/29/2016

Page 38: Should Tata Motors go for Autonomous cars?

New Model for Automobile Industry

18

Strategy Marketing Operations Human Resources

8/29/2016

Page 39: Should Tata Motors go for Autonomous cars?

Emerging Market Considerations

14

6

3

54

1 2

Higher No. of Traffic Deaths

Opportunity: More population more fatalities so in future more

demand

Fewer Legal and Government Constraints

Opportunity: Less stringent litigation process

Less stringent driving standards

Challenge: Greater congestion, Problematic traffic planning, Less

Enforcement of driving lawsAvailability of cheap labours as

drivers

Quick Adopters

Opportunity: Receptive to new technologies

Eg. Smartphone

Different Purpose

Opportunity: Mostly use of cars for commuting from one city to

another thus travelling on highways

Growing Demand for Cars

Car ownership less penetrated

Strategy Marketing Operations Human Resources

8/29/2016 Source: Morgan Stanley Report

Page 40: Should Tata Motors go for Autonomous cars?

Triple Bottom Line

Economic:

Manufacturers and infrastructure providers will now become the subject of liability, rather than the direct consumers (drivers)

Automakers will also have to adopt new business models of car sharing, rental, or taxi services rather than car ownership or retail.

Considerable growth in data consumption as autonomous vehicles will communicate over mobile networks

Changes in employment structure

Social:

Cleaner Ecosystem and better human experience

Improvement in human productivity

Less fatalities

Legal:

Liability and Insurance

Standard of performance and care,

Privacy, Data Protection and Cyber issues

168/29/2016

Page 41: Should Tata Motors go for Autonomous cars?

Porter’s Diamond

Porter’s Diamond

Context for firm Strategy and Rivalry

• Internal Suppliers (+)(Technology and hardware)• Government Support (-

)• Tax (-)

Demand Condition

•Increasing Customer Sophistication (+)

•Growing Domestic Market (+)

•Lower Buying Power (-)

Factor (Input) Conditions

•Rules and Regulation (-)•Cheap Labor (+)•Growing Middle Class (+)•Transport Infrastructure

(-)•IT Industry (+)

Related and Supporting Industries

•Internal Suppliers(+)•R&D(-)•Chips, processors etc.

suppliers (-)•Financing Support @ TATA

Group (+)

1

Strategy Marketing Operations Human Resources

8/29/2016

Page 42: Should Tata Motors go for Autonomous cars?

New entrant

Suppliers Buyers

Substitutes

Porter’s Forces

Medium

Medium to High

Low to Medium

Medium to High

Medium to High

Large no. of substitutes: Cars( normal ), Ride sharing, Rental services, Video call, Media technology, drones

Few Suppliers of Soft wares, chips, processors

High cost technology, Few sellers

Technology firms: Google, AppleBig firms: High cost

3

Strategy Marketing Operations Human Resources

8/29/2016

Page 43: Should Tata Motors go for Autonomous cars?

RISK: Reverse Perception About Cars

7

• Teleconferencing, Videoconferencing• Social Media

• Work from home• Self run enterprises

• Hologram

Eliminating Need to Travel

• People becoming environment conscious: Walk/Cycle

• Use of public transport(Rapid Transit System, Metro, Bus and

Trains) and car pools thus reducing car needs• Drones

• Taxi aggregators

Alternative Modes of Traveling

8/29/2016

Strategy Marketing Operations Human Resources

Page 44: Should Tata Motors go for Autonomous cars?

PESTLE Analysis

13

Political: Government Support for infrastructure

development and Cost consideration for reduction

in fatalities, oil import, pollution reduction etc.

Economic: Cost Consideration (Product) with respect to purchasing power

of people

Social: Building consumer awareness and acceptance

Technological: Software and Hardware

Legal: Resolving liability issues and getting regulatory

support from government

Environmental: Less pollution but concerns about

E waste

8/29/2016

Strategy Marketing Operations Human Resources

Page 45: Should Tata Motors go for Autonomous cars?

Way Forward - Strategy

45

L4: Service IndustryL0 : Electric Vehicles

L1: Driving Assistance

L2 :Semi Autonomous

L3: Autonomous

Completely battery or solar powered vehicles

Vehicles that are similar to the current Tesla products

Will be autonomous most of the time. Will need human

intervention occasionally

No need for steering wheels or peddles

Powered completely by AIAdvanced Technologies

No longer sell cars, but sell car hoursAutonomous Taxi and ride sharingRent a car business modelNo new technological changes from L4

Strategy Marketing Operations Human Resources

8/29/2016

Page 46: Should Tata Motors go for Autonomous cars?

Other Considerations

11

Demand in Existing market of Tata Motors

Demand growing at a high rate in Europe (35% volume share in 2017)

and at a slow rate in other regions but growth will fasten post phase 1

Cost Minimization

TCS AdvantageTechnical competence

Internal technology transfer: Subsidiary Jaguar and Rover

Low marketing cost : Brand AwarenessCheap Labour

New Avenues

Mobile Service and Technology Suppliers

Energy ProvidersFinancial Services

Government and Transport ServicesHealth Care

More Media Consumption

Global Demand

The Autonomous car/ driverless cars market demand is expected to reach

138,089 units by 2024.Source: Grand View Research

8/29/2016

Strategy Marketing Operations Human Resources

Page 47: Should Tata Motors go for Autonomous cars?

Global Demand

The Autonomous Cars/Driverless Cars Market demand is expected to reach 138,089 units by 2024.

128/29/2016

Strategy Marketing Operations Human Resources

Page 48: Should Tata Motors go for Autonomous cars?

Tata’s Marketing- key to success

Marketing prowess

Dealership

There can be Tata Dealers

Sales team

There can be no commissioned sales people

Marketing

Cars should be marketed, not aggressively sold

Price

Price should be for mass market

Transaction

The transactions done online

Inventory

The models are build to order

Test Drive

Put down $100 and do it

Wait

Customers might have to wait a little

Great Product

Start High

Reverse engineering

Multi channel model

Build Community

Leverage Media

8/29/201648

Strategy Marketing Operations Human Resources

Page 49: Should Tata Motors go for Autonomous cars?

88/29/2016

Strategy Marketing Operations Human Resources

Page 50: Should Tata Motors go for Autonomous cars?

What do potential consumers think?

8/29/2016 50

Strategy Marketing Operations Human Resources

Page 51: Should Tata Motors go for Autonomous cars?

Trends in India• Autonomous Cars Search

• Tesla Motors 0

20

40

60

80

100

120

20

04

-01

20

04

-07

20

05

-01

20

05

-07

20

06

-01

20

06

-07

20

07

-01

20

07

-07

20

08

-01

20

08

-07

20

09

-01

20

09

-07

20

10

-01

20

10

-07

20

11

-01

20

11

-07

20

12

-01

20

12

-07

20

13

-01

20

13

-07

20

14

-01

20

14

-07

20

15

-01

20

15

-07

20

16

-01

20

16

-07

Search Patterns for Car Companies

Tata Motors: (India) Tesla: (India) BMW: (India)

Audi: (India) Maruti Suzuki: (India)

• The overall search trends look favorable.• Maruti Suzuki is searched more than Tata Motors but tata motors

will be catering to premium customers and not to mass market

8/29/2016 51

Strategy Marketing Operations Human Resources

Page 52: Should Tata Motors go for Autonomous cars?

Potential Suppliers?

8/29/2016 52

Page 53: Should Tata Motors go for Autonomous cars?

Chassis

53

01

02

03

Next gen Interiors

Continental ,Bosch and Firmo

Exteriors

Atieva, Delphi, Roush, Renovo Motors and Edison2

Retrofitting

Cruise and Zoox

Chassis

Retrofitting

Cruise

ExteriorInterior

8/29/2016

Strategy Marketing Operations Human Resources

Page 54: Should Tata Motors go for Autonomous cars?

Sensors

54

01

02

03

Camera/Lidar

Velodyne, Mobileye, Quanergy, Valeo

Ultrasound

Bosch,Continental, Denso, Valeo

Infrared

Autoliv, Bosch, Denso

04 Radar

• Long range: Autoliv, Bosch, TRW, Continental, Hella, Valeo• Short Range: Autoliv, Bosch, TRW, Continental, Delphi, Denso

Sensors

Camera/Lidar

RadarInfrared

Ultrasound

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Strategy Marketing Operations Human Resources

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Processors01 Processors

Renasas,Infineon,ST,TI,Freescale,NXP,Nvidia,Intel, Qualcomm, MediatekSamsung

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Strategy Marketing Operations Human Resources

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Navigation

56

01

02

Advanced Mapping

Google, TomTom, Here (Nokia)

V to V Communication

Autotalks, Cohda Wireless, Cisco

Navigation

Advanced Mapping

V To V Communication

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Strategy Marketing Operations Human Resources

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Software01 Software

Carmakers,Tier-One Suppliers,Google, Electrobit,Mobileye, IBM

• Various carmakers like Tesla use their own proprietary software in their cars

• Various Tier-One suppliers also use their own proprietary software in their products

• Thus it is not possible to clearly define suppliers for software .

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Strategy Marketing Operations Human Resources

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Specialized Technology Vendors in India

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GEOKNO INDIA PVT LTD(A spin-off from IIT Kharagpur)

LIDAR Technology

Geokno is the first and only company in India to have scanners in all three categories- Airborne, Mobile andTerrestrial LiDAR

Specialise in:• Airports• Industrial Parks• Utility department• Government Agency• University/College

OIS Advanced Technology

RADAR sysyems

Specialise in:• C4ISR Systems• RADARS

• Foliage Penetration Synthetic Aperture Radar

• 3D Bird Detection and Monitoring Radar System

• Bird Deterrence System• 3D Air Surveillance UAV Detection

Radar• Ground Surveillance Radar

• Night Vision Devices• Gate mgmt. Systems

Advanced MappingTechnlology

Remote sensing/CAD

Host of companies:• AirSan Geographic• Antils Geospacial• Anu-Bhav Geospecial• ArcGeosysystems• Astar Infosystems• Digitalsol

Savari and Security Innovation Partner

V2V, V2X

Specialise:• Enabling V2V Commu-nication for Safety• V2X• Predicive Safety Apps

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A country of tremendous brain power and human capital and the one thing that makes it happen is an

opportunity

~Ratan Tata

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TCS Campus Commune

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https://campuscommune.tcs.com/intro

R&D Alliances

JV With TCS for talent in top research and educational institutes around the world.

Specialized vendors in India can also be potential acquisition targets.

Educational Institutions• IIT Kharagpur students founded campus shuttle

Strategy Marketing Operations Human Resources

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Legal Documents

• Current scenario on legal issues :

• http://www.driverless-future.com/?cat=9

• The Colombia Science and Technology Law Review: http://stlr.org/2015/11/22/law-and-the-problem-of-autonomous-cars/

• National Conference of State Legislatures: http://www.ncsl.org/research/transportation/autonomous-vehicles-legislation.aspx

• Department of Motor Vehicles (State of Nevada): http://www.dmvnv.com/autonomous.htm

• Autonomous Vehicle Technology: http://www.rand.org/content/dam/rand/pubs/research_reports/RR400/RR443-2/RAND_RR443-2.pdf

• Washington School of Law Report: https://www.law.washington.edu/Clinics/technology/Reports/AutonomousVehicle.pdf

• The Centre for Internet and Society: http://cyberlaw.stanford.edu/wiki/index.php/Automated_Driving:_Legislative_and_Regulatory_Action

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Source: EY Report

TATA IMPLEMENTATION

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TATA MOTORS STRATEGIC CONSIDERATIONSource: EY Report

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Conclusions

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Why Autonomous?

Sound financial health

Brand name and trust

Emerging market

opportunity

First mover advantages

Subsidiary support

Availability of suppliers

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Thanks For ComingHave A Nice Day